1. REVITALIZATION AND MODERNISATION OF DISTRICT HEATING SYSTEMS IN SMALLER SERBIAN MUNICIPALITIES

2. CONTEKST Kragujevac Nis Novi Sad BEOGRAD Pancevo Čačak Užice Subotica Valjevo Kraljevo Pirot Sombor KfW – I, II, III phase EBRD KfW – I, II phase KfW – III phase EAR DH project Zrenjanin

3. CONTEKST  In 55 towns  Installed capacity 6600 MW 16% households (400,000 flats) 40 % in Belgrade  2004 Annual heat supply 5300 GWh  Average age (XII -2004) of: BOILERS30 years NETWORK25 years SUBSTATIONS25 years DHS in SERBIA

4. Planed investments into industrial DH systems in Serbia Mil. Euro Project from the field of reconstruction, revitalization and modernization of heat sources 29.160 Projects of distribution network revitalization 43.699 Project which include the revitalization of heating substations 14.559 Projects concerning the increase of the heat energy consume and project of construction or replacement of existing heat sources 12.00

5. NIP funds planed for the acquisition of heat meters Pecinci15.753,00 euros Novi Pazar 37.276,2 euros Jagodina 92.818,8 euros Zajecar83.638,4 euros Trstenik91.237,6 euros

6. Specific project goals: The revitalization of boiler capacities. Revitalization of the DH network Modernization of heating substations

7. Planned activities The candidate cities are the cites which have previously asked for financial support from the Ministry of mining and energy and which have been rejected due to the restrictions of financing The cities have prepared revitalization plans, the costs are as follows: Pecinci270.000,00 euros Novi Pazar 450.000,00 euros Jagodina 450.000,00 euros Zajecar450.000,00 euros Trstenik630.000,00 euros The local DH companies will contribute to the project through the installation of the equipment through regular maintenance work carried out by their own personnel.

8. Planned activities The activities include: the selection of PIU which would be in charge of project implementation and securing fund allocation. Procurement of equipment for urgent measures in the DH systems Installation of the equipment Commissioning of the works Basic project lots : Needed funds 2.250.000,00 euros; Own funds 1.000.000,00 euros Donor funds 1.250.000,00 euros Unsecured funds 2.250.000,00 euros proposed project beginning– January 2008; expected duration – 12 months.

9. Project end user The municipalities involved in the project The ministry of mining and energy, specifically the five mentioned

10. Potential Donors Key donors for this project are: The Kingdom of Norway Kingdom of Sweden, Kingdom of Spain Federal republic of Germany, the Swiss confederation Considering they are all dedicated to increasing energy efficiency in Serbia.